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Processor Vendors Must Support End-to-End Development, According to VDC
Markets expected to recover following first dip in more than a decade thanks to IoT & edge
NATICK, MA | July 8, 2020 - The IoT, embedded, and mobile semiconductor market faces near-term challenges caused by the widespread impact of COVID-19, according to a new report from VDC Research (click here for more information). VDC expects the long-term outlook to be strong overall although specific industries such as aerospace and automotive face more significant challenges. The pandemic will be a driver for the emerging medical device sector, which will see strong growth over the next several years to manage the industry’s data challenges, particularly for the secure networking and storage of imaging files and EHR. Key applications such as patient monitoring equipment, analytic instrumentation, and diagnostic imaging will also fuel market growth.
Despite the pandemic, edge computing is redefining the processor landscape, ushering in high-performance silicon targeted at AI/ML, autonomous driving, IIoT, and more workloads. Leading processor vendors such as Arm, Intel, NXP, Qualcomm, Renesas, and Xilinx are sharpening their offerings to compete for dominance at the edge in a wide variety of deployment/computing environments.
Vertical Edge Use Cases
“Requirements for embedded and edge processors today stretch far beyond hardware, expanding into support for cloud, connectivity, and software/application development,” said Dan Mandell, Senior Analyst of IoT and Embedded Technology at VDC Research. Embedded processor hardware and IP providers are facing growing pressure to quickly expand their support in different domains to become platform providers and solution enablers. At the same time, new market opportunities are opening up for feature-rich embedded processing solutions supported by a broad ecosystem of technology providers.
After several years of significant M&A activity, VDC predicts that market consolidation will dwindle as embedded processor market leaders shift their focus on expanding specific capabilities for optimized workload acceleration, industrial connectivity, and security. In terms of competitive landscape, the embedded SoC and MSoC domains have grown massively in size throughout the past several years with new entrants, while the embedded MCU, MPU, and FPGA sectors have relatively few major competitors leading the market.
Embedded processors remain the foundation for the majority of the hardware and software stack, and suppliers must consistently improve their ability to support today’s IoT and embedded projects. “As progressively more projects across the landscape feature edge and near-real-time computing requirements, suppliers need to focus beyond semiconductors to support more of the growing, high-value market opportunity enabling the development of end-to-end solutions,” said Mandell.
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About VDC Research
VDC Research provides in-depth insights to technology vendors, end users, and investors across the globe. Offering syndicated reports and custom consultations, VDC’s market research coverage of AutoID & Data Capture, Enterprise Mobility & Connected Devices, Industrial Automation & Sensors, and IoT & Embedded Technologies is among the most advanced in the industry, helping clients make critical decisions with confidence. VDC’s methodologies consistently provide accurate forecasts and unmatched thought leadership for deeply technical markets.